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agronomists. He has paid for consultations regarding the
property. Petitioner also regularly read magazines relating to
agriculture. Petitioner has professional companies come to his
property to prune the trees. If a tree dies, petitioner does not
have someone come and determine the cause. It appears that
petitioner does not have expertise in regards to farming and
consults experts only occasionally.
We consider the time and effort expended by the taxpayer in
carrying on the activity. An intent to derive a profit may be
demonstrated by a taxpayer who devotes much of his personal time
and effort to the activity, a taxpayer who withdraws from another
occupation to devote most of his energies to the activity, or a
taxpayer who devotes a limited amount of time but employs
competent and qualified people to carry on the activity. Sec.
1.183-2(b)(3), Income Tax Regs. Petitioner is an attorney who
operates two law offices. He usually goes to the farm on
Thursday and comes back on Saturday or Sunday. He has conceded
that the home on the farm property is a second home. He
estimates that he spends one full day a month on farming
activities. He has no full-time help. On the whole, petitioner
expends only minimal time and effort on the farm activity.
We consider the taxpayer's expectation that assets used in
the activity may appreciate in value. If land is purchased or
held primarily with the intent to profit from the increase in its
value, and the taxpayer also engages in farming on the land, the
farming and the holding of the land will ordinarily be considered
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